Big bull Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company's initial public offer (IPO) opened for bidding on November 30. The Star Health IPO includes fresh issuance of Rs 2,000 crore and an offer for sale (OFS) of shares worth Rs 5,249 crore by promoters and existing shareholders.
By 4:06 pm on Tuesday, the first day of the bidding process, the Star Health IPO was subscribed six percent, receiving bids for 47.8 lakh shares as against the 8.1 crore shares on offer.
The IPO will close on December 2. The company plans to raise up to Rs 7,249.18 crore through the share sale in the price band of Rs 870-900.
The company is the largest private health insurance player as well as the largest retail health insurance company in India by health GWP (gross written premium). Star Health has a 15.8 percent health insurance market share and a 31.3 percent retail health insurance market share in F21, according to CRISIL Research.
Also read: Rakesh Jhunjhunwala-backed Star Health's IPO to open for subscription on Tuesday; key things to know
With only 10 percent of the issue being reserved for retail investors, it is highly likely that most investors will not be allotted a lot in the IPO. Axis Capital has recommended investors to subscribe to the issue, with Angel One recommending the same.
(Edited by : Shoma Bhattacharjee)